In the Government order, first read above, the Government constituted a Committee of Group of Ministers under the Chairmanship of the Hon’ble Minister for Finance to review the existing system of Contractual Employment and make necessary recommendations, with the following Ministers as the members of the committee:-

2. The Group of Ministers held extensive discussions with the officers of the various Departments and also conducted negotiations with representatives of employees associations. The Group of Ministers has recommended for increasing the remunerations of the contract employees by fifty percent of the existing remuneration which was fixed based on the minimum of the relevant time scale of pay of Revised Pay Scales, 2010 or the existing remuneration whichever is less. The Group of Ministers also recommended that in no case the revised remuneration shall be less than Rs.12,000/- per month.

3. After careful examination, the Government has agreed to the above recommendation of the Group of Ministers and hereby order that the remuneration of the functionaries working on contract basis be enhanced by fifty percent of the existing remuneration which was fixed based on the minimum of the relevant time scale of pay of Revised Pay Scales, 2010 or the existing remuneration, whichever is less. The revised remuneration shall in no case be less than Rs.12,000/- per month.

4. This enhancement shall come into force with effect from 1st April, 2017.

5. The remuneration to the contract employees shall be governed by the following conditions:-

a) Remuneration thus calculated shall from now onwards form an all inclusive consolidated monthly payment for all purposes.

b) No other allowances shall be paid.

c) No other increase in any form like annual increments etc shall be admissible

on the above consolidated monthly remuneration.

d) The enhancement is applicable to those contract employees who have been appointed against vacant sanctioned posts. The enhancement is also applicable to those contract employees who have been appointed by specific government orders issued with the concurrence of Finance Department.

e) No further recruitment shall be made on contract basis without prior approval of the Government in Finance Department. For any appointment in deviation, disciplinary proceedings shall be initiated against the appointing authorities and severe penalties under A.P. Civil Services (CCA) Rules, 1991 may be imposed and the appointments made irregularly shall be cancelled. The salary bills of such irregular appointees shall not be admitted in the treasuries.

6 The Departments are requested to draw utmost attention to the conditions as referred to above, while enhancing the remuneration to the functionaries working on contract basis under their administrative control.

7. These orders will not apply to the consultants / advisors working in Government Departments.

8. These orders will not apply to those employees whose monthly remuneration was fixed (or) already revised with the concurrence of Finance Department after 02.06.2014.

9. These orders will not apply to the employees working on outsourcing basis.

10. The orders for enhancement of remuneration to the contract employees in the HM & FW and LET & F Departments will be issued separately.

11. All the Departments are requested to take further necessary action in the matter accordingly.